Potato supplier Produce Investments has completed the acquisition of The Jersey Royal Company in a £15m deal.
The acquisition of the Jersey-based potato brand by the owner of supplier Greenvale, was first announced in January.
The deal consists of £11m in cash, and just over 1.59 million ordinary shares in the company of 1p each.
The purchase of Jersey Royal would strengthen Produce Investments’ product offering to customers by offering a wider range of potato varieties and would broaden its customer base, claimed chairman Barrie Clapham.
Jersey Royal’s presence as a major supplier to the multiples would also help diversify the company’s customer risk profile, potentially providing cross-selling opportunities, and would give Produce Investments access to early season potatoes, he said.
“This purchase of such a well-known business takes the company into a very significant sector of the potato market,” Clapham added.
“It will provide an opportunity to continue to develop a business which combines real food and farming heritage with the demands of modern supply chains and consumer passion for this high quality brand.”
As a part of the deal, the company has entered into a put and call option to acquire Peacock Farm - which owns the freehold property of Jersey Royal’s main packing site on Jersey - within three years, for a fixed price of £6.35m.